🚜 Today’s Market News – Fuel, Oil & Global Events Update for Rural America
🛢️ OPEC+ to Boost Oil Production Again
Oil-producing countries in OPEC+ (including Saudi Arabia, Russia, and others) are planning another big boost in oil output this September—adding around 550,000 barrels a day. This is part of their plan to roll back earlier production cuts they made to support prices. Since April, they’ve already restored about 2.5 million barrels per day, which is a little under 2.5% of global oil use.
Even with these increases, the group is still holding back a lot of oil from the market (about 3.7 million barrels/day) and says those extra cuts will stay in place through 2026.
âš“ Fuel Oil Imports Drop on the Gulf Coast
Fuel oil imports into the U.S. Gulf Coast dropped to the lowest level ever recorded in June—just 213,000 barrels per day. That’s a big drop from over 400,000 a year ago. Why the drop? Tighter global supply and high prices made this type of oil less appealing. U.S. refineries, especially those on the Gulf Coast (which handle more than half the country’s refining), have started using heavier crude oils that work better with their equipment and produce more diesel and gasoline.
Add in a dip in oil shipments from Mexico and continued sanctions on Russian oil, and it’s easy to see why refineries are adjusting. As a result, Gulf Coast fuel oil supplies are now at their lowest point since 1996.
🌍 Tensions Rise Again in the Middle East
Israel carried out airstrikes on targets in Yemen for the first time in nearly a month, hitting ports and a power plant in response to ongoing drone and missile attacks from the Houthi rebels. This exchange is part of the ongoing fallout from the war in Gaza and has kept tensions in the region high. So far, there are no reported casualties, but the back-and-forth continues to raise concerns about shipping safety in the Red Sea and surrounding areas.
đź’ą Market Recap
Even with OPEC+ announcing a bigger-than-expected boost in oil output for August, oil prices bounced back after an initial dip. Why? The market is still tight, and demand—especially in Asia—is strong enough to absorb the extra supply for now.
Saudi Arabia even raised its crude prices for August shipments to Asia, showing confidence that buyers are ready. Some analysts are also predicting another big output hike coming in September.
Meanwhile, traders are keeping a close eye on tariff talks in the U.S.—any new tariffs could slow the global economy and hurt fuel demand. But for now, a weaker U.S. dollar is helping support oil prices.
⚡ Energy Quick Fact
In 2024, the U.S. imported only 17% of its energy—the lowest since 1985! That’s down by half compared to the record highs of the mid-2000s. For the third year in a row, we’re exporting more energy than we import. We’re leading the way in natural gas, crude oil, renewables, and even wind and solar power.
Most of our remaining imports are still petroleum-based (84%), with natural gas making up another 15%.
📞 Want to know what this could mean for your farm fuel budget? Give your account manager a call—we’re here to help you stay ahead.
